Fresno Bee
November 16, 2006

San Joaquin Valley lags in giving to foundations; Study finds the region severely underserved.
by E.J. Schultz

The San Joaquin Valley trails much of the state in charitable foundation giving, according to a new study that re-veals large donation gaps between coastal and inland California.

The Valley -- which has some of the poorest communities in the state -- is severely underserved, receiving just $16 per capita in foundation donations, according to the findings of a study made public Wednesday by the James Irvine Foundation, one of the largest foundations in the state.

"You basically have a population that is growing, and yet there is not the philanthropic capacity to meet the grow-ing needs," said Kris Putnam of Putnam Community Investment Consulting, which prepared the report for the founda-tion.

The study, based on 2003 tax data, gives a comprehensive look at private and community-based giving across the state and shows that inland California lags the rest of the state by wide margins.

The Bay Area led all regions with 1,020 foundations and $250 in per capita giving, which is almost 16 times the amount distributed in both the San Joaquin Valley and the Inland Empire, the two fastest-growing regions of the state.

James E. Canales, president and CEO of the Irvine foundation, said coastal regions have a tradition of giving not found in the state's inland regions. If the trend continues, he warned, inland California will lack the social services and arts and cultural amenities demanded by its changing and growing population.

"It's our view that in many respects that the future of our state is going to depend in some measure in how we ac-commodate and plan for the growth that we're seeing in these regions," he said.

As the study points out, the Central Valley population has increased from 4 million in 1980 to 5.7 million in 2000, and is projected to grow to 11.7 million by 2040. Yet nearly 90% of the state's total foundation assets are based in the Bay Area and Los Angeles.

The San Joaquin Valley, stretching from San Joaquin County to Kern County, is home to only four community foundations and 70 private foundations. Per capita giving in 2003 ranged from a paltry $3 per capita in Madera County to $22 in Kings County, which ranked 30th in the state. Fresno County's giving was $20 per capita and Tulare County's was $5.

Daniel DeSantis, CEO of the Fresno Regional Foundation, said there is plenty of wealth in the region. It's just that residents "don't really understand the nature of philanthropy."

For instance, residents have traditionally given directly to charities, instead of foundations, he said. Because of that, he said, foundations have not been able to build up endowments. That means community foundations, which tend to give away money locally, have less interest income, and as a result make fewer donations.

But DeSantis doesn't blame residents. Instead, he says the 40-year-old Fresno Regional Foundation has failed in its job of bringing awareness to philanthropy.

"The foundation in the last 10 years somehow just went to sleep," he said.

DeSantis, who was hired a year and a half ago, said the organization is turning things around. It is reaching out to the community, he said, and has named more high-profile business people to its board. Recently named members in-clude James Hallowell, who successfully ran Hallowell Chevrolet for 31 years, and John Horstmann, owner of an insur-ance services company.

The foundation was established in 1966 to improve the quality of life in the Valley through philanthropy. Discre-tionary giving -- donations distributed based on board decisions -- has jumped from $150,000 last year to $2 million this year, thanks to some big donations, DeSantis said.

"We've woken up in the last couple of years," he said.

But there's still a huge gap to close. With about $12 million in assets, the foundation is the largest community foun-dation in the San Joaquin Valley. But statewide, it ranks as the 19th largest community foundation based on assets, ac-cording to the Irvine study. The top community foundation, Marin Community Foundation in the Bay Area, has more than $1 billion in assets.

The goal of the report is to bring attention to the disparity in giving across the state, Canales said.

The Irvine foundation -- a private organization with more than $1.5 billion in assets -- has stepped up its grant mak-ing to inland regions.

In the past five years it has invested more than $85 million in the Central Valley and Inland Empire.

"What we're hoping to do," Canales said, "is to stimulate the same kind of pattern in inland California [as in coastal communities], where people see the importance of investing in their communities."